Foreign direct investment, domestic investment, and growth of manufacturing sector in Pakistan: Aggregate and disaggregate analysis

This study aims to examine the effects of foreign direct investment (FDI) and domestic private investment (DPI) on growth of manufacturing sector in Pakistan in aggregate and disaggregate settings. The overall manufacturing sector, large-scale and small-scale manufacturing industries are analyzed in...

Full description

Saved in:

Bibliographic Details
Main Author:	Rahman, Saif Ur
Format:	Thesis
Language:	eng eng eng
Published:	2022
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/11148/1/permission%20to%20deposit-not%20allow-s902636_0001.pdf https://etd.uum.edu.my/11148/2/s902636_01.pdf https://etd.uum.edu.my/11148/3/s902636_02.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uum-etd.11148
record_format	uketd_dc
spelling	my-uum-etd.111482024-06-10T02:09:36Z Foreign direct investment, domestic investment, and growth of manufacturing sector in Pakistan: Aggregate and disaggregate analysis 2022 Rahman, Saif Ur Abu Bakar, Nor'Aznin School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance This study aims to examine the effects of foreign direct investment (FDI) and domestic private investment (DPI) on growth of manufacturing sector in Pakistan in aggregate and disaggregate settings. The overall manufacturing sector, large-scale and small-scale manufacturing industries are analyzed in aggregate setting. However, in disaggregate setting, four industries from each large-scale and small-scale manufacturing sector are selected. The textile, sugar, cement and chemical industries are selected as large-scale industries while furniture and sports, rubber, tobacco and leather industries are selected as small-scale industries. The study also investigates the interaction effect of institutional quality on the relationship between FDI, DPI and growth of manufacturing sector. By applying the Auto Regressive Distributed Lag (ARDL) approach on the time series data from 1980-2017, the positive and significant effect of FDI and DPI on growth of manufacturing sector is found. Moreover, in disaggregate analysis of large-scale and small-scale manufacturing industries, both FDI and DPI positively and significantly influence the manufacturing growth except sugar and leather industry where the effect of FDI is found to be negative. The results of the interaction effect of institutional quality show that performance of FDI increases with interaction effect of institutional quality. The institutional indicators show positive interaction effect with FDI and DPI on growth of manufacturing sector. The government should develop such economic policies that attract FDI and DPI to facilitate new national and foreign investments through the provision of the necessary infrastructure and appropriate energy supply in Pakistan. Institutional quality should be among the main indicators for devising and executing macroeconomic policies to enhance FDI, DPI and manufacturing growth. Policymakers should pay more attention to maintain government stability and socioeconomic conditions, government effectiveness, control of corruption in order to build a united, peaceful, and harmonious society. 2022 Thesis https://etd.uum.edu.my/11148/ https://etd.uum.edu.my/11148/1/permission%20to%20deposit-not%20allow-s902636_0001.pdf text eng staffonly https://etd.uum.edu.my/11148/2/s902636_01.pdf text eng 2025-03-14 staffonly https://etd.uum.edu.my/11148/3/s902636_02.pdf text eng 2025-03-14 staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Abu Bakar, Nor'Aznin
topic	HG Finance
spellingShingle	HG Finance Rahman, Saif Ur Foreign direct investment, domestic investment, and growth of manufacturing sector in Pakistan: Aggregate and disaggregate analysis
description	This study aims to examine the effects of foreign direct investment (FDI) and domestic private investment (DPI) on growth of manufacturing sector in Pakistan in aggregate and disaggregate settings. The overall manufacturing sector, large-scale and small-scale manufacturing industries are analyzed in aggregate setting. However, in disaggregate setting, four industries from each large-scale and small-scale manufacturing sector are selected. The textile, sugar, cement and chemical industries are selected as large-scale industries while furniture and sports, rubber, tobacco and leather industries are selected as small-scale industries. The study also investigates the interaction effect of institutional quality on the relationship between FDI, DPI and growth of manufacturing sector. By applying the Auto Regressive Distributed Lag (ARDL) approach on the time series data from 1980-2017, the positive and significant effect of FDI and DPI on growth of manufacturing sector is found. Moreover, in disaggregate analysis of large-scale and small-scale manufacturing industries, both FDI and DPI positively and significantly influence the manufacturing growth except sugar and leather industry where the effect of FDI is found to be negative. The results of the interaction effect of institutional quality show that performance of FDI increases with interaction effect of institutional quality. The institutional indicators show positive interaction effect with FDI and DPI on growth of manufacturing sector. The government should develop such economic policies that attract FDI and DPI to facilitate new national and foreign investments through the provision of the necessary infrastructure and appropriate energy supply in Pakistan. Institutional quality should be among the main indicators for devising and executing macroeconomic policies to enhance FDI, DPI and manufacturing growth. Policymakers should pay more attention to maintain government stability and socioeconomic conditions, government effectiveness, control of corruption in order to build a united, peaceful, and harmonious society.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Rahman, Saif Ur
author_facet	Rahman, Saif Ur
author_sort	Rahman, Saif Ur
title	Foreign direct investment, domestic investment, and growth of manufacturing sector in Pakistan: Aggregate and disaggregate analysis
title_short	Foreign direct investment, domestic investment, and growth of manufacturing sector in Pakistan: Aggregate and disaggregate analysis
title_full	Foreign direct investment, domestic investment, and growth of manufacturing sector in Pakistan: Aggregate and disaggregate analysis
title_fullStr	Foreign direct investment, domestic investment, and growth of manufacturing sector in Pakistan: Aggregate and disaggregate analysis
title_full_unstemmed	Foreign direct investment, domestic investment, and growth of manufacturing sector in Pakistan: Aggregate and disaggregate analysis
title_sort	foreign direct investment, domestic investment, and growth of manufacturing sector in pakistan: aggregate and disaggregate analysis
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2022
url	https://etd.uum.edu.my/11148/1/permission%20to%20deposit-not%20allow-s902636_0001.pdf https://etd.uum.edu.my/11148/2/s902636_01.pdf https://etd.uum.edu.my/11148/3/s902636_02.pdf
_version_	1804888200621064192

Foreign direct investment, domestic investment, and growth of manufacturing sector in Pakistan: Aggregate and disaggregate analysis

Similar Items